Adani Total Gas Ltd.Strong Growth Amid Margin Pressure

Adani Total Gas delivered robust operational performance in Q1 FY27 with revenue growing 27% year-on-year to ₹1,908 crores, driven by 13% volume growth to 303 MMSCM.

However, EBITDA margins compressed to 14.7% from historical levels of 25% due to structural headwinds in gas procurement. The CNG segment led growth with 18% year-on-year expansion, while PNG grew 4%. Management attributed margin pressure to declining APM allocation now at 40% of sourcing and elevated spot purchases at 15% post-curtailment, with input costs rising ₹5 per SCM during the quarter. The company added 38,000 household connections and expanded its EV charging network to 5,306 points with 100% volume growth.

Looking ahead, management expects volume growth to continue at similar pace through FY27, with margin recovery to 20-25% levels conditional on Middle East crisis resolution and LNG supply normalization. The company is pursuing midterm gas contracts to reduce spot exposure and accelerating its transformation into an integrated clean energy platform.